USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or
the “Partnership”) announced today its financial and operating
results for the first quarter 2020.
First Quarter 2020 Highlights
- Total revenues were $179.0 million for the first quarter 2020,
compared to $170.7 million for the first quarter 2019.
- Net loss was $602.5 million for the first quarter 2020,
compared to net income of $6.6 million for the first quarter 2019.
The net loss for the first quarter 2020 included a $619.4 million
charge due to non-cash impairment of goodwill.
- Net cash provided by operating activities was $50.1 million for
the first quarter 2020, compared to $47.8 million for the first
quarter 2019.
- Adjusted EBITDA was $106.2 million for the first quarter 2020,
compared to $101.4 million for the first quarter 2019.
- Distributable Cash Flow was $54.7 million for the first quarter
2020, compared to $54.9 million for the first quarter 2019.
- Announced cash distribution of $0.525 per common unit for the
first quarter 2020, consistent with the first quarter 2019.
- Distributable Cash Flow Coverage was 1.08x for the first
quarter 2020, compared to 1.16x for the first quarter 2019.
“The first quarter reflected the stability of USA Compression’s
compression services business model, which is focused on the large
horsepower asset class utilized in large infrastructure
applications located in attractive, active regions,” commented Eric
D. Long, USA Compression’s President and Chief Executive Officer.
“During the quarter, we stayed consistent to our business strategy,
deploying a limited number of new assets selectively to strong
counterparties under fixed-fee contracts.”
He continued, “We certainly find ourselves in unprecedented
times, not only for our industry but also worldwide, as we cope
with a global pandemic and more specific challenges to the energy
industry. As time goes on, we should gain more visibility, but the
general uncertainty these dynamics have caused make predicting the
future difficult at best, and have led us to take a cautious
approach in managing the business. In light of the current
environment, we are reducing capital spending and operating
expenses to ensure that USA Compression is well-positioned to work
through the remainder of 2020 while maintaining safe and reliable
operations. While we had initially budgeted for a reduced 2020
capital plan, based on recent market events, we currently plan to
reduce further our 2020 growth capital spending by approximately
25%. We have also taken cost-cutting measures across the business,
reducing operating expenses by approximately 10%, which we expect
will help maintain our strong margins as we work through the
present market volatility,” Mr. Long said.
“We continue to believe that the natural gas side of the energy
sector is better positioned than other commodities, underpinned by
resilient baseload demand and potential for growth as a clean fuel
for future energy needs. While the exact extent to which current
market factors will affect the domestic natural gas supply/demand
balance is uncertain, the expected long-term future demand for
natural gas coupled with what we expect will be a meaningful supply
decrease from lower associated gas production should drive the
natural gas market to rebalance in the not-too-distant future. We
expect this dynamic will continue to have a positive impact on the
demand for the compression services that USA Compression provides,
although our ability to forecast our activity and the future of the
market is uncertain.”
Expansion capital expenditures were $46.5 million, maintenance
capital expenditures were $8.8 million and cash interest expense,
net was $30.5 million for the first quarter 2020.
On April 16, 2020, the Partnership announced a first quarter
cash distribution of $0.525 per common unit, which corresponds to
an annualized distribution rate of $2.10 per common unit. The
distribution will be paid on May 8, 2020 to common unitholders of
record as of the close of business on April 27, 2020. For the first
quarter 2020, the Partnership’s Distributable Cash Flow Coverage
was 1.08x.
Operational and
Financial Data
Three Months Ended
March 31, 2020
December 31,
2019
March 31, 2019
Operational data:
Fleet horsepower (at period end)
3,705,550
3,682,968
3,619,898
Revenue generating horsepower (at period
end)
3,316,666
3,310,024
3,293,903
Average revenue generating horsepower
3,320,724
3,308,392
3,280,601
Revenue generating compression units (at
period end)
4,516
4,559
4,595
Horsepower utilization (at period end)
(1)
92.0
%
93.7
%
94.5
%
Average horsepower utilization (for the
period) (1)
92.5
%
93.9
%
94.2
%
Financial data ($ in thousands, except
per horsepower data):
Revenue
$
178,999
$
178,188
$
170,746
Average revenue per revenue generating
horsepower per month (2)
$
16.89
$
16.82
$
16.45
Net income (loss) (3)
$
(602,461
)
$
9,281
$
6,587
Operating income (loss) (3)
$
(569,710
)
$
43,801
$
35,528
Net cash provided by operating
activities
$
50,077
$
91,700
$
47,769
Gross operating margin (4)
$
119,834
$
121,578
$
113,721
Gross operating margin percentage
66.9
%
68.2
%
66.6
%
Adjusted EBITDA (4)
$
106,184
$
109,228
$
101,377
Adjusted EBITDA percentage
59.3
%
61.3
%
59.4
%
Distributable Cash Flow (4)
$
54,702
$
58,021
$
54,852
(1)
Horsepower utilization is calculated as (i) the sum of (a)
revenue generating horsepower; (b) horsepower in the Partnership’s
fleet that is under contract but is not yet generating revenue; and
(c) horsepower not yet in the Partnership’s fleet that is under
contract, not yet generating revenue and that is subject to a
purchase order, divided by (ii) total available horsepower less
idle horsepower that is under repair. Horsepower utilization based
on revenue generating horsepower and fleet horsepower was 89.5%,
89.9% and 91.0% at March 31, 2020, December 31, 2019 and March 31,
2019, respectively. Average horsepower utilization based on revenue
generating horsepower and fleet horsepower was 89.8%, 89.8% and
90.8% for the three months ended March 31, 2020, December 31, 2019
and March 31, 2019, respectively.
(2)
Calculated as the average of the result of
dividing the contractual monthly rate for all units at the end of
each month in the period by the sum of the revenue generating
horsepower at the end of each month in the period.
(3)
The Partnership’s net loss and operating
loss for the first quarter 2020 included a $619.4 million charge
due to non-cash impairment of goodwill. The $619.4 million goodwill
impairment charge is due to the asset carrying amount exceeding
fair value as of March 31, 2020. The impairment charge did not
impact the Partnership’s cash flows, liquidity position or
compliance with debt covenants.
(4)
Gross operating margin, Adjusted EBITDA
and Distributable Cash Flow are all non-U.S. generally accepted
accounting principles (“Non-GAAP”) financial measures. For the
definition of each measure, as well as reconciliations of each
measure to its most directly comparable financial measures
calculated and presented in accordance with GAAP, see “Non-GAAP
Financial Measures” below.
Liquidity and Long-Term
Debt
As of March 31, 2020, the Partnership was in compliance with all
covenants under its $1.6 billion revolving credit facility. As of
March 31, 2020, the Partnership had outstanding borrowings under
the revolving credit facility of $459.3 million, $1.1 billion of
borrowing base availability and, subject to compliance with the
applicable financial covenants, available borrowing capacity of
$185.9 million. As of March 31, 2020, the outstanding aggregate
principal amount of the Partnership’s 6.875% senior notes due 2026
and 6.875% senior notes due 2027 was $725.0 million and $750.0
million, respectively.
Full-Year 2020 Outlook
USA Compression is updating its full-year 2020 guidance as
follows:
- Net loss range of $590.0 million to $570.0 million;
- A forward-looking estimate of net cash provided by operating
activities is not provided because the items necessary to estimate
net cash provided by operating activities, in particular the change
in operating assets and liabilities, are not accessible or
estimable at this time. The Partnership does not anticipate the
changes in operating assets and liabilities to be material, but
changes in accounts receivable, accounts payable, accrued
liabilities and deferred revenue could be significant, such that
the amount of net cash provided by operating activities would vary
substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow;
- Adjusted EBITDA range of $395.0 million to $415.0 million;
and
- Distributable Cash Flow range of $195.0 million to $215.0
million.
Conference Call
The Partnership will host a conference call today beginning at
10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss first
quarter 2020 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio
webcast.
By Phone:
Dial 800-458-4121 inside the U.S. and
Canada at least 10 minutes before the call and ask for the USA
Compression Partners Earnings Call. Investors outside the U.S. and
Canada should dial 323-794-2093. The conference ID for both is
5098752.
A replay of the call will be available
through May 15, 2020. Callers inside the U.S. and Canada may access
the replay by dialing 888-203-1112. Investors outside the U.S. and
Canada should dial 719-457-0820. The conference ID for both is
5098752.
By Webcast:
Connect to the webcast via the “Events”
page of USA Compression’s Investor Relations website at
http://investors.usacompression.com. Please log in at least 10
minutes in advance to register and download any necessary software.
A replay will be available shortly after the call.
About USA Compression Partners,
LP
USA Compression Partners, LP is a growth-oriented Delaware
limited partnership that is one of the nation’s largest independent
providers of natural gas compression services in terms of total
compression fleet horsepower. USA Compression partners with a broad
customer base composed of producers, processors, gatherers and
transporters of natural gas and crude oil. USA Compression focuses
on providing natural gas compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at usacompression.com.
Non-GAAP Financial
Measures
This news release includes the Non-GAAP financial measures of
gross operating margin, Adjusted EBITDA, Distributable Cash Flow
and Distributable Cash Flow Coverage Ratio.
Management views Adjusted EBITDA as one of its primary tools for
evaluating the Partnership’s results of operations, and the
Partnership tracks this item on a monthly basis both as an absolute
amount and as a percentage of revenue compared to the prior month,
year-to-date, prior year and budget. The Partnership defines EBITDA
as net income (loss) before net interest expense, depreciation and
amortization expense, and income tax expense. The Partnership
defines Adjusted EBITDA as EBITDA plus impairment of compression
equipment, impairment of goodwill, interest income on capital
lease, unit-based compensation expense (income), severance charges,
certain transaction fees, loss (gain) on disposition of assets and
other. Adjusted EBITDA is used as a supplemental financial measure
by management and external users of its financial statements, such
as investors and commercial banks, to assess:
- the financial performance of the Partnership’s assets without
regard to the impact of financing methods, capital structure or
historical cost basis of the Partnership’s assets;
- the viability of capital expenditure projects and the overall
rates of return on alternative investment opportunities;
- the ability of the Partnership’s assets to generate cash
sufficient to make debt payments and pay distributions; and
- the Partnership’s operating performance as compared to those of
other companies in its industry without regard to the impact of
financing methods and capital structure.
Management believes that Adjusted EBITDA provides useful
information to investors because, when viewed with GAAP results and
the accompanying reconciliations, it provides a more complete
understanding of the Partnership’s performance than GAAP results
alone. Management also believes that external users of its
financial statements benefit from having access to the same
financial measures that management uses in evaluating the results
of the Partnership’s business.
Adjusted EBITDA should not be considered an alternative to, or
more meaningful than, net income (loss), operating income (loss),
cash flows from operating activities or any other measure of
financial performance or liquidity presented in accordance with
GAAP as measures of operating performance and liquidity. Moreover,
Adjusted EBITDA as presented may not be comparable to similarly
titled measures of other companies.
Gross operating margin is defined as revenue less cost of
operations, exclusive of depreciation and amortization expense.
Management believes that gross operating margin is useful as a
supplemental measure of the Partnership’s operating profitability.
Gross operating margin is impacted primarily by the pricing trends
for service operations and cost of operations, including labor
rates for service technicians, volume and per unit costs for
lubricant oils, quantity and pricing of routine preventative
maintenance on compression units and property tax rates on
compression units. Gross operating margin should not be considered
an alternative to, or more meaningful than, operating income
(loss), its most directly comparable GAAP financial measure, or any
other measure of financial performance presented in accordance with
GAAP. Moreover, gross operating margin as presented may not be
comparable to similarly titled measures of other companies. Because
the Partnership capitalizes assets, depreciation and amortization
of equipment is a necessary element of its costs. To compensate for
the limitations of gross operating margin as a measure of the
Partnership’s performance, management believes that it is important
to consider operating income determined under GAAP, as well as
gross operating margin, to evaluate the Partnership’s operating
profitability. A reconciliation of gross operating margin to
operating income (loss) is provided in this news release.
Distributable Cash Flow is defined as net income (loss) plus
non-cash interest expense, non-cash income tax expense,
depreciation and amortization expense, unit-based compensation
expense (income), impairment of compression equipment, impairment
of goodwill, certain transaction fees, severance charges, loss
(gain) on disposition of assets, proceeds from insurance recovery
and other, less distributions on the Partnership’s Series A
Preferred Units (“Preferred Units”) and maintenance capital
expenditures.
Distributable Cash Flow should not be considered as an
alternative to, or more meaningful than, net income (loss),
operating income (loss), cash flows from operating activities or
any other measure of financial performance presented in accordance
with GAAP as measures of operating performance and liquidity.
Moreover, the Partnership’s Distributable Cash Flow as presented
may not be comparable to similarly titled measures of other
companies.
Management believes Distributable Cash Flow is an important
measure of operating performance because it allows management,
investors and others to compare basic cash flows the Partnership
generates (after distributions on the Partnership’s Preferred Units
but prior to any retained cash reserves established by the
Partnership’s general partner and the effect of the Distribution
Reinvestment Plan) to the cash distributions the Partnership
expects to pay its common unitholders.
Distributable Cash Flow Coverage Ratio is defined as
Distributable Cash Flow divided by distributions declared to common
unitholders in respect of such period. Management believes
Distributable Cash Flow Coverage Ratio is an important measure of
operating performance because it allows management, investors and
others to gauge the Partnership’s ability to pay distributions to
common unitholders using the cash flows the Partnership generates.
The Partnership’s Distributable Cash Flow Coverage Ratio as
presented may not be comparable to similarly titled measures of
other companies.
This news release also contains a forward-looking estimate of
Adjusted EBITDA and Distributable Cash Flow projected to be
generated by the Partnership in its 2020 fiscal year. A
forward-looking estimate of net cash provided by operating
activities and reconciliations of the forward-looking estimates of
Adjusted EBITDA and Distributable Cash Flow to net cash provided by
operating activities are not provided because the items necessary
to estimate net cash provided by operating activities, in
particular the change in operating assets and liabilities, are not
accessible or estimable at this time. The Partnership does not
anticipate the changes in operating assets and liabilities to be
material, but changes in accounts receivable, accounts payable,
accrued liabilities and deferred revenue could be significant, such
that the amount of net cash provided by operating activities would
vary substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted
EBITDA reconciled to net income (loss) and net cash provided by
operating activities, and net income (loss) and net cash provided
by operating activities reconciled to Distributable Cash Flow and
Distributable Cash Flow Coverage Ratio.
Forward-Looking
Statements
Some of the information in this news release may contain
forward-looking statements. These statements can be identified by
the use of forward-looking terminology including “may,” “believe,”
“expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,”
“project,” “outlook,” “will,” “could,” “should,” or other similar
words or the negatives thereof, and include the Partnership’s
expectation of future performance contained herein, including as
described under “Full-Year 2020 Outlook.” These statements discuss
future expectations, contain projections of results of operations
or of financial condition, or state other “forward-looking”
information. You are cautioned not to place undue reliance on any
forward-looking statements, which can be affected by assumptions
used or by known risks or uncertainties. Consequently, no
forward-looking statements can be guaranteed. When considering
these forward-looking statements, you should keep in mind the risk
factors noted below and other cautionary statements in this news
release. The risk factors and other factors noted throughout this
news release could cause actual results to differ materially from
those contained in any forward-looking statement. Known material
factors that could cause the Partnership’s actual results to differ
materially from the results contemplated by such forward-looking
statements include:
- changes in the long-term supply of and demand for crude oil and
natural gas, including as a result of uncertainty regarding the
length of time it will take for the United States and the rest of
the world to slow the spread of the COVID-19 virus to the point
where applicable authorities are comfortable easing current
restrictions on various commercial and economic activities; such
restrictions are designed to protect public health but also have
the effect of significantly reducing demand for crude oil and
natural gas;
- the severity and duration of world health events, including the
recent COVID-19 outbreak, related economic repercussions, actions
taken by governmental authorities and other third parties in
response to the pandemic and the resulting severe disruption in the
oil and gas industry and negative impact on demand for oil and gas,
which is negatively impacting our business;
- changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industries
specifically, including the current significant surplus in the
supply of oil and actions by the members of the Organization of the
Petroleum Exporting Countries (“OPEC”) and Russia (together with
OPEC and other allied producing countries, “OPEC+”) with respect to
oil production levels and announcements of potential changes in
such levels, including the ability of the OPEC+ countries to agree
on and comply with supply limitations;
- uncertainty regarding the timing, pace and extent of an
economic recovery in the United States and elsewhere, which in turn
will likely affect demand for crude oil and natural gas and
therefore the demand for the compression and treating services we
provide and the commercial opportunities available to us;
- the deterioration of the financial condition of our
customers;
- renegotiation of material terms of customer contracts no longer
in primary term;
- competitive conditions in our industry;
- our ability to realize the anticipated benefits of
acquisitions;
- actions taken by our customers, competitors and third-party
operators;
- changes in the availability and cost of capital;
- operating hazards, natural disasters, epidemics, pandemics
(such as COVID-19), weather-related delays, casualty losses and
other matters beyond our control;
- operational challenges relating to the COVID-19 pandemic and
efforts to mitigate the spread of the virus, including logistical
challenges, protecting the health and well-being of our employees,
remote work arrangements, performance of contracts and supply chain
disruptions;
- the effects of existing and future laws and governmental
regulations;
- the effects of future litigation;
- factors described in Part I, Item 1A (“Risk Factors”) of the
Partnership’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, which was filed with the Securities and Exchange
Commission on February 18, 2020 and subsequently filed reports;
and
- other factors discussed in the Partnership’s filings with the
Securities and Exchange Commission.
All forward-looking statements speak only as of the date of this
news release and are expressly qualified in their entirety by the
foregoing cautionary statements. Unless legally required, the
Partnership undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. Unpredictable or unknown factors not
discussed herein also could have material adverse effects on
forward-looking statements.
USA COMPRESSION PARTNERS,
LP
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except for per
unit amounts – Unaudited)
Three Months Ended
March 31, 2020
December 31,
2019
March 31, 2019
Revenues:
Contract operations
$
172,794
$
171,052
$
163,976
Parts and service
3,048
2,692
2,684
Related party
3,157
4,444
4,086
Total revenues
178,999
178,188
170,746
Cost of operations, exclusive of
depreciation and amortization
59,165
56,610
57,025
Gross operating margin
119,834
121,578
113,721
Other operating and administrative costs
and expenses:
Selling, general and administrative
12,385
15,561
15,995
Depreciation and amortization
58,762
58,227
58,924
Loss (gain) on disposition of assets
(1,014
)
1,329
40
Impairment of compression equipment
—
2,660
3,234
Impairment of goodwill
619,411
—
—
Total other operating and administrative
costs and expenses
689,544
77,777
78,193
Operating income (loss)
(569,710
)
43,801
35,528
Other income (expense):
Interest expense, net
(32,478
)
(32,984
)
(28,857
)
Other
23
27
20
Total other expense
(32,455
)
(32,957
)
(28,837
)
Net income (loss) before income tax
expense
(602,165
)
10,844
6,691
Income tax expense
296
1,563
104
Net income (loss)
(602,461
)
9,281
6,587
Less: distributions on Preferred Units
(12,187
)
(12,187
)
(12,187
)
Net loss attributable to common and Class
B unitholders’ interests
$
(614,648
)
$
(2,906
)
$
(5,600
)
Net loss attributable to:
Common units
$
(614,648
)
$
(2,817
)
$
(2,088
)
Class B Units
$
—
$
(89
)
$
(3,512
)
Weighted average common units outstanding
– basic and diluted
96,707
96,658
90,060
Weighted average Class B Units outstanding
– basic and diluted
—
—
6,398
Basic and diluted net loss per common
unit
$
(6.36
)
$
(0.03
)
$
(0.02
)
Basic and diluted net loss per Class B
Unit
$
—
$
—
$
(0.55
)
Distributions declared per common unit
$
0.525
$
0.525
$
0.525
USA COMPRESSION PARTNERS,
LP
SELECTED BALANCE SHEET
DATA
(In thousands, except unit
amounts – Unaudited)
March 31, 2020
Selected Balance Sheet data:
Total assets
$
3,103,087
Long-term debt, net
$
1,909,578
Total partners’ capital
$
516,616
Common units outstanding
96,721,320
USA COMPRESSION PARTNERS,
LP
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands —
Unaudited)
Three Months Ended
March 31, 2020
December 31,
2019
March 31, 2019
Net cash provided by operating
activities
$
50,077
$
91,700
$
47,769
Net cash used in investing activities
(42,070
)
(36,263
)
(34,653
)
Net cash used in financing activities
(8,015
)
(55,429
)
(12,988
)
USA COMPRESSION PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
ADJUSTED EBITDA TO NET INCOME
(LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(In thousands —
Unaudited)
The following table reconciles Adjusted
EBITDA to net income (loss) and net cash provided by operating
activities, its most directly comparable GAAP financial measures,
for each of the periods presented:
Three Months Ended
March 31, 2020
December 31,
2019
March 31, 2019
Net income (loss)
$
(602,461
)
$
9,281
$
6,587
Interest expense, net
32,478
32,984
28,857
Depreciation and amortization
58,762
58,227
58,924
Income tax expense
296
1,563
104
EBITDA
$
(510,925
)
$
102,055
$
94,472
Interest income on capital lease
124
142
194
Unit-based compensation expense (income)
(1)
(1,829
)
2,884
3,134
Transaction expenses (2)
—
23
86
Severance charges
417
135
217
Loss (gain) on disposition of assets
(1,014
)
1,329
40
Impairment of compression equipment
(3)
—
2,660
3,234
Impairment of goodwill (4)
619,411
—
—
Adjusted EBITDA
$
106,184
$
109,228
$
101,377
Interest expense, net
(32,478
)
(32,984
)
(28,857
)
Non-cash interest expense
1,986
1,987
1,680
Income tax expense
(296
)
(1,563
)
(104
)
Interest income on capital lease
(124
)
(142
)
(194
)
Transaction expenses
—
(23
)
(86
)
Severance charges
(417
)
(135
)
(217
)
Other
1,623
1,774
14
Changes in operating assets and
liabilities
(26,401
)
13,558
(25,844
)
Net cash provided by operating
activities
$
50,077
$
91,700
$
47,769
________________________
(1)
For the three months ended March 31, 2020,
December 31, 2019 and March 31, 2019, unit-based compensation
expense included $0.9 million, $0.6 million and $0.7 million,
respectively, of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards
and $0, $0 and $0.3 million, respectively, related to the cash
portion of any settlement of phantom unit awards upon vesting. The
remainder of the unit-based compensation expense (income) for all
periods was related to non-cash adjustments to the unit-based
compensation liability.
(2)
Represents certain expenses related to
potential and completed transactions and other items. The
Partnership believes it is useful to investors to exclude these
fees.
(3)
Represents non-cash charges incurred to
write down long-lived assets with recorded values that are not
expected to be recovered through future cash flows.
(4)
Represents non-cash charges due to the
asset carrying amount exceeding fair value as of March 31,
2020.
USA COMPRESSION PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
DISTRIBUTABLE CASH FLOW TO NET
INCOME (LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(Dollars in thousands —
Unaudited)
The following table reconciles
Distributable Cash Flow to net income (loss) and net cash provided
by operating activities, its most directly comparable GAAP
financial measures, for each of the periods presented:
Three Months Ended
March 31, 2020
December 31,
2019
March 31, 2019
Net income (loss)
$
(602,461
)
$
9,281
$
6,587
Non-cash interest expense
1,986
1,987
1,680
Depreciation and amortization
58,762
58,227
58,924
Non-cash income tax expense
123
1,024
14
Unit-based compensation expense (income)
(1)
(1,829
)
2,884
3,134
Transaction expenses (2)
—
23
86
Severance charges
417
135
217
Loss (gain) on disposition of assets
(1,014
)
1,329
40
Impairment of compression equipment
(3)
—
2,660
3,234
Impairment of goodwill (4)
619,411
—
—
Distributions on Preferred Units
(12,187
)
(12,187
)
(12,187
)
Proceeds from insurance recovery
336
427
44
Maintenance capital expenditures (5)
(8,842
)
(7,769
)
(6,921
)
Distributable Cash Flow
$
54,702
$
58,021
$
54,852
Maintenance capital expenditures
8,842
7,769
6,921
Transaction expenses
—
(23
)
(86
)
Severance charges
(417
)
(135
)
(217
)
Distributions on Preferred Units
12,187
12,187
12,187
Other
1,164
323
(44
)
Changes in operating assets and
liabilities
(26,401
)
13,558
(25,844
)
Net cash provided by operating
activities
$
50,077
$
91,700
$
47,769
Distributable Cash Flow
$
54,702
$
58,021
$
54,852
Distributions for Distributable Cash Flow
Coverage Ratio (6)
$
50,779
$
50,732
$
47,333
Distributable Cash Flow Coverage Ratio
1.08x
1.14x
1.16x
________________________
(1)
For the three months ended March 31, 2020,
December 31, 2019 and March 31, 2019, unit-based compensation
expense included $0.9 million, $0.6 million and $0.7 million,
respectively, of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards
and $0, $0 and $0.3 million, respectively, related to the cash
portion of any settlement of phantom unit awards upon vesting. The
remainder of the unit-based compensation expense (income) for all
periods was related to non-cash adjustments to the unit-based
compensation liability.
(2)
Represents certain expenses related to
potential and completed transactions and other items. The
Partnership believes it is useful to investors to exclude these
fees.
(3)
Represents non-cash charges incurred to
write down long-lived assets with recorded values that are not
expected to be recovered through future cash flows.
(4)
Represents non-cash charges due to the
asset carrying amount exceeding fair value as of March 31,
2020.
(5)
Reflects actual maintenance capital
expenditures for the periods presented. Maintenance capital
expenditures are capital expenditures made to maintain the
operating capacity of the Partnership’s assets and extend their
useful lives, replace partially or fully depreciated assets, or
other capital expenditures that are incurred in maintaining the
Partnership’s existing business and related cash flow.
(6)
Represents distributions to the holders of
the Partnership’s common units as of the record date.
USA COMPRESSION PARTNERS,
LP
FULL-YEAR 2020 ADJUSTED EBITDA
AND DISTRIBUTABLE CASH FLOW GUIDANCE RANGE
RECONCILIATION TO NET
LOSS
(Unaudited)
Guidance
Net loss
$(590.0 million) to $(570.0
million)
Plus: Interest expense, net
128.5 million
Plus: Depreciation and amortization
231.0 million
Plus: Income tax expense
0.5 million
EBITDA
$(230.0 million) to $(210.0
million)
Plus: Interest income on capital lease
0.5 million
Plus: Unit-based compensation expense and
other (1)
5.1 million
Plus: Impairment of goodwill
619.4 million
Adjusted EBITDA
$395.0 million to $415.0
million
Less: Cash interest expense
120.5 million
Less: Current income tax expense
0.5 million
Less: Maintenance capital expenditures
30.0 million
Less: Distributions on Preferred Units
49.0 million
Distributable Cash Flow
$195.0 million to $215.0
million
________________________
(1)
Unit-based compensation expense is based
on our closing per unit price of $8.01 on April 30, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200505005298/en/
USA Compression Partners, LP Matthew C. Liuzzi Chief
Financial Officer 512-369-1624 ir@usacompression.com
USA Compression Partners (NYSE:USAC)
Historical Stock Chart
From Apr 2024 to May 2024
USA Compression Partners (NYSE:USAC)
Historical Stock Chart
From May 2023 to May 2024